MSR/MSSF - czym jest? Definicja pojęcia

Retail banking – what is it and what does it consist of?

Retail banking is a broadly defined financial services sector that encompasses the entire range of financial products and services offered by banks to individual customers and small businesses. Modern retail banking uses cutting-edge technology, such as online systems, credit cards, online transfers and more, to provide its customers with the highest level of service and security.

What is retail banking? Definition of the term

The term “retail banking” refers to financial services that are offered to individual customers and small businesses. Retail banking consists of various products and services that are offered by banks to meet the needs of customers. These services include opening and managing bank accounts, loans, advances, term deposits, credit cards, payment services, investment assistance, insurance and many others.

What is retail banking in Poland?

Retail banking is the process by which banks offer a wide range of financial products and services to individuals and small businesses. Banks use state-of-the-art technology to provide customers with convenience and security. The retail banking process is complex and consists of many stages.

The first stage is gathering information about the customer and his financial requirements. The bank verifies the information to ensure that the customer can meet any requirements for taking out a loan or other financial services. Once the bank is sure that the customer is a reliable borrower, it will offer him a suitable product or service.

The next stage is the conclusion of the contract. The customer must accept the terms of the contract and complete all the required documents. When signing the contract, the customer gives the bank a power of attorney to perform certain activities, such as transfers, payment processing and others.

The next stage is the performance of services. The bank performs certain activities, such as processing withdrawals, transfers, deposits, fees and other services. The bank uses state-of-the-art technology to ensure speed, security and convenience.

What services does retail banking include?

Retail banking in Poland encompasses a wide range of banking and financial services, mainly aimed at individual customers. Here are some of the main services offered under retail banking:

  1. Personal accounts: Offering various types of personal accounts, including savings accounts, current accounts and foreign currency accounts.
  2. Payment cards: Issuing debit and credit cards that allow payments in stores, online and cash withdrawals from ATMs.
  3. Credit and loans: Providing cash loans, mortgages, leases and other forms of consumer financing.
  4. Savings and deposits: Offering various savings products, including term deposits, savings accounts, savings plans, etc.
  5. Insurance: Offering various types of insurance, such as life insurance, health insurance, auto insurance and others.
  6. Investments: Providing opportunities for customers to invest in mutual funds, the stock market, bonds and other financial instruments.
  7. Internet banking and mobile banking: Providing online and mobile platforms that enable customers to manage their finances, make transfers, payments, check balances, etc.
  8. Payment services: Providing money transfer services, both domestic and international, including instant transfers, SEPA and others.
  9. Financial consulting: Offering advice to clients on financial matters such as budgeting, saving, investing and retirement planning.
  10. Contact channels: Providing customers with various contact channels, such as hotlines, e-mail, online chat and others, to help them solve problems and obtain information.
  11. Mortgage loans: Offering loans for the purchase or renovation of real estate.
  12. Junior accounts: Special accounts designed for children and teens to help them learn how to save and manage their finances.

These are just a few examples of services offered through retail banking in Poland. Banks are constantly introducing new products and services to better meet the needs of their customers.

What services does retail banking include?
What services does retail banking include? / canva

Who can become a customer of retail banking?

Retail banking is mainly for individual customers who are looking for financial services and products tailored to their personal needs. The main customers of retail banking are individuals, including:

  1. Individuals: Any adult can become a retail banking customer. This includes employees, retirees, students, entrepreneurs and others regardless of their source of income.
  2. Youth: Many banks offer special accounts for young people to teach them how to manage their finances from an early age. Junior accounts are designed for children and teenagers.
  3. Students: Students, whether undergraduate, graduate or doctoral, often use retail banking services to manage their finances and take out student loans.
  4. Employees: Both salariedemployees and those working on freelance or contractual contracts can use retail banking services to manage their earnings.
  5. Retirees: Retirees or pensioners can also be customers of retail banking, needing services to manage their livelihoods.
  6. People with disabilities: Banks often offer services tailored to the needs of people with disabilities, such as online banking and voice-enabled payment cards.
  7. Micro and small business entrepreneurs: Entrepreneurs with micro and small businesses can also use retail banking services, but they may also need corporate banking services.
  8. Foreign customers: Non-citizens, but resident in the country, can also use retail banking if they meet the relevant conditions.

In principle, any person who has a need to manage their finances, make payments, save, invest or use various financial products can become a retail banking customer.

Retail banking vs. private banking

Retail banking and private banking are two different categories of banking services that target different groups of customers with different needs and financial resources. Here are the main differences between the two:

  1. Customer group:
    • Retail banking: Includes a wide range of individual customers, including employees, students, retirees, small businessmen, etc. This is the most common type of banking and offers products and services available to a large number of people.
    • Private banking: Targets customers with higher financial resources, such as people with large assets, investors, entrepreneurs with significant income. It offers more personalized and specialized services.
  2. Services and products:
    • Retail banking: Focuses on standard products such as savings accounts, current accounts, mortgages, payment cards and other general services.
    • Private banking: Offers more advanced and personalized services, such as investment portfolio management, financial planning, tax advice, access to exclusive investments and other customized solutions.
  3. Customer service:
    • Retail banking: Serves larger groups of customers, so interactions with the bank may be less personalized. Standard customer service and support are available.
    • Private banking: Private banking clients have access to dedicated financial advisors or relationship managers who provide personalized advice and service.
  4. Minimum financial requirements:
    • Retail banking: There are typically no large financial requirements to open an account or use basic services.
    • Private banking: There are often minimum financial requirements, such as a minimum level of assets or investments, that customers must meet to use private banking services.
  5. Wealth management:
    • Retail banking: Focuses on customers’ daily financial needs, such as payments, saving and basic investments.
    • Private banking: Focuses on comprehensive customer wealth management, including investment strategies, inheritance planning, tax optimization and other advanced financial aspects.

In summary, retail banking is more mass-accessible and targets a broad spectrum of customers, while private banking offers personalized services for customers with higher financial resources and more complex needs.

The popularity of retail banking

Retail banking has become very popular in recent years. More and more people are taking advantage of the various financial services, such as opening accounts, loans, advances, deposits, credit cards and others, offered by banks. Retail banking is widely available, and is convenient and secure thanks to modern technology and tools. Retail banking also provides customers with convenience and flexibility to meet their financial needs conveniently.

Retail banking – frequently asked questions

What is retail banking?
Retail banking is a sector of banking that offers financial products and services for individual customers, such as personal accounts, payment cards, loans, savings, investments and other solutions tailored to the needs of the mass public.

What is corporate banking?
Corporate banking is a field of financial services that targets companies and enterprises. It includes liquidity management, operational financing, commercial transaction processing, financial strategy consulting and other business support solutions.

What is banking?
Banking is a branch of the economy that deals with storing, transferring and managing money, offering a variety of financial products and providing credit and financial-related services.

What does one do in investment banking?
In investment banking, one manages investment portfolios, provides investment advice, analyzes financial markets and executes capital markets transactions on behalf of clients, including companies and investors.

How much does an investment banker earn?
The average salary for an investment banker is 7000 zlotys.

Is an investment bank a commercial bank?
An investment bank and a commercial bank are different financial institutions. An investment bank deals with services for companies and investors, such as investment consulting and corporate banking. A commercial bank, on the other hand, serves a variety of customers, including individuals and small businesses, offering retail and corporate products such as loans and accounts.

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